What due diligence is involved in choosing a franchise that will be successful?
Due diligence is a critical step, but unfortunately most new franchisees don’t do well in this phase because they either can’t be bothered or they lack the skills necessary to perform a good investigation.
By “can’t be bothered” I mean that many buyers are too lazy to perform the function or they “trust” the franchisor’s word without verifying promises. This is very common because it is just easier to ask and be told as opposed to digging. By “lack the skills necessary to perform a good investigation.” I mean that due diligence is “not” an easy task and unless a person has guidance or past experience, they will be “guessing” at what questions to ask. Because this is such an important issue, I developed a service for prospective franchisees to help them investigate properly. (See http://bibbygroup.com/buying-a-franchise.htm for a greater explanation.)